Compound interest

1

Malcolm invests £600 into a saving account which has an interest rate of 2% pa (per annum).

Calculate the total amount he will receive if he leaves the money untouched for 4 years.

Round to the nearest penny.

2

Julia invests £5200 into a savings account which has an interest rate of 3.4% pa.

Calculate the amount she would have in her account after 3 years if she leaves the money untouched. Round to the nearest penny.

3

Alice buys a car costing £7500. It depreciates in value each year by 7%.

How much had the car depreciated to after 2 years? Round to the nearest penny.

4

Sarah buys a car costing £12,500. It depreciates in value by 8% in the first year, 10% in the second year and 5% in the third year.

What is the car worth after 3 years? (Round to the nearest penny).

5

Dave buys a painting which cost him £250.

It appreciates in value by 16% in the first year and then 21% in the second year.

By how much had the painting appreciated after 2 years?

6

It is estimated that an iceberg weighs 84,000 tonnes.

As the iceberg moves into warmer water, its weight decreases by 25% each day.

What will the iceberg weigh after 3 days in the warmer water?

7

A local council recycles 42,000 tonnes of waste a year.

The council aims to increase the amount of waste recycled by 8% each year.

How much waste does it expect to recycle in 3 years time?

8

Hector buys an antique chair for £600.

It is expected to increase in value at the rate of 4.5% each year.

How much is it expected to be worth in 3 years time?

9

Diana puts £3,500 into an account that pays interest of 4% per annum (every year).

How much will be in the account after 3 years?

10

A vineyard produced 250 kilograms of grapes in 2005.

It is estimated the vineyard will be able to increase production at a rate of 3% p.a. for the next 5 years.

Calculate the weight of grapes that will be produced in 5 years time.